Pensions under RON 3,000 (EUR 600) in Romania will no longer be taxed starting October 1, 2024, minister of labor Simona Bucura-Oprescu has announced. 

The decision, supported by prime minister Marcel Ciolacu, raises the current tax exemption threshold from RON 2,000 to RON 3,000. 

PM Ciolacu emphasized the fairness of this measure, stating it would be implemented through an emergency ordinance. He highlighted that approximately 800,000 pensioners would benefit from this recalibration. 

"I believe this approach - raising the tax exemption threshold to RON 3,000 - is the right one," Ciolacu said during a press conference, quoted by Agerpres. 

The financial impact of this measure is estimated at RON 800 million (EUR 161 mln). 

Despite the budgetary implications, Marcel Ciolacu indicated that the overall cost is manageable, reinforcing the government's commitment to supporting pensioners during this period. 

This move comes amid a wider reform of the pension system in Romania, which included the recalculation of all state pensions under new principles. The authorities estimated that about 3 million retirees will get higher pensions starting September 1, 2024, following the adjustments.

iulian@romania-insider.com

(Photo source: Inquam Photos / Malina Norocea)